Re: Correct Use of Firecalc?
Thanks for your reply. The reminder not to measure with a micrometer when you're going to be cutting with an axe is well taken - it's always good to remember that. Firecalc is good for ballparking at best.
However, is it really pushing the limits of Firecalc to ask it to factor in a spending increase for only "x" number of years and then just stop that spending? The calculator does seem to have that function built into it's basic design on it's very first page.
If you enter an inflation-adjusted 15K spending increase starting now in 2006, the calculator adds that inflation-adjusted amount into your spending for the ENTIRE plan period - say you chose 30 years (where it says "when will the plan end?"), right?
Then, if you want to simply "turn off" this 30-year 15K inflation-adjusted spending increase 10 years from now, you should be able to accomplish this by just entering a separate 15K decrease in spending in 2016, and Firecalc's inflation-adjusting program would automatically adjust the 15K upward to account for 10 years worth of inflation and then decrease the spending by that increased amount, thereby cancelling out the original inflation-adjusted 15K spending increase started 10 years earlier. Wouldn't that be how it works? Simple, no?
Why would the calculator give you the option for a future decrease OR increase in spending to be inflation-adjusted in the first place if it didn't automatically adjust for the future inflation? Otherwise, it wouldn't give you that option, right? I would think that you don't have guess what 15K would become when adjusted for inflation 10 years from now - the program should do it for you. Is there something I'm missing here?
Maybe this is a question for Dory36 or someone who really knows more details about how Firecalc computes future inflation-adjusted dollars for future spending increases and decreases. Does anyone here know more about this?
Thanks again for all the feedback.